The Amount to Be Shown on the Cash Flow Statement

question 67

Multiple Choice

The amount to be shown on the cash flow statement as net cash provided by investing activities would total what amount?

• A)$225,000.
• B)$750,000.
• C)$795,000.
• D)$975,000.

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Definitions:

Weighted Average Method

An inventory costing method that assigns an average cost to each unit of inventory, considering the units' weights in the calculation.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold to customers.

Process Costing System

A method of assigning production costs to units of output by averaging the total costs over all units produced, suitable for manufacturing processes producing homogeneous products.

Weighted Average Method

An inventory costing method that calculates the cost of goods sold based on the average cost of all items, weighted by the quantity.